Assigned to HEA & APPROP                                                                                     AS PASSED BY THE SENATE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR H.B. 2459

 

transfer of monies; health centers

(NOW: medically underserved areas; capital; appropriation)

 

Purpose

 

Appropriates $3.0 million in each of FY 2001-2002 and FY 2002-2003 from the medically needy account to the Department of Health Services (DHS) for capital project grants to public and private nonprofit entities and hospitals that provide health care and dental services.  Eases the ability to establish special health service districts.

 

Background

 

For FY 1997-1998, the Legislature appropriated $2.5 million from the medically needy account to DHS for capital project grants to public and private nonprofit entities that provide health care in rural and medically underserved areas (Laws 1997, Chapter 257).  The capital projects may include the purchase or lease of land, buildings, mobile medical clinics, equipment and furnishings, telemedicine equipment and facilities and other costs necessary to construct, expand or renovate health care facilities to expand or provide primary care services.  Various communities have received grants through this program, including: Ash Fork, Buckeye, Elfrida, Gila Bend, Marana, Maricopa, Maricopa County, Nogales, Page, Phoenix, St. Johns, St. Michaels and Tucson.

 

In previous years, the Legislature has reauthorized this program by appropriating $2.5 million in FY 1998-1999 and FY 1999-2000.  However, funding for this program was not continued in 2000.  H.B. 2459 re-establishes this program by appropriating $1.5 million in each of FY 2001-2002 and FY 2002-2003 from the medically needy account for capital project grants to public and private nonprofit entities providing health care and dental services in rural or medically underserved areas.  Additionally, this legislation appropriates $1.5 million in each year of the biennium from the medically needy account to DHS for capital project grants to nonprofit  hospitals in rural or medically underserved areas.

 

This bill also contains provisions from Senate Bill 1556, regarding health service districts.

 

Provisions

 

Capital Project Grants

 

1.      Appropriates $1.5 million in each of FY 2001-2002 and FY 2002-2003 from the medically needy account to DHS for capital project grants to public and private nonprofit entities that provide health care and dental services in rural areas.

 

2.      Sets a maximum of $500,000 for a single medical capital project grant and $350,000 for a dental capital project grant.

 

3.      Directs DHS to give preference to applicants that provide telemedicine services in rural areas and to applicants with matching or in-kind contributions.

 

4.      Prohibits DHS from funding capital projects that receive monies under the primary care program. 

 

5.      Limits recipients to a maximum of two capital project grants and to one capital project grant in a two-year period.

 

6.      Defines capital projects.

 

Hospital Capital Project Grants

 

7.      Appropriates $1.5 million in each of FY 2001-2002 and FY 2002-2003 from the medically needy account to DHS for capital project grants for nonprofit hospitals in rural or medically underserved areas.  Defines capital projects.

 

8.      Requires DHS to give preference to applicants in rural areas that also serve medically needy populations and provide matching contributions.

 

Special Health Service Districts

 

9.      Appropriates $150,000 annually from the medically needy account to assist with the establishment of health service districts and to assist existing health service districts.

 

10.  Reduces, from 25 percent to 10 percent,  the minimum percentage of collective assessed value that must be represented by property owners signing a petition to form a health service district.

 

11.  Provides for a general effective date.

 

Amendments Adopted by the Appropriation Committee

 

1.      Changes the source of funding from the state general fund to the medically needy account.

 

2.      Adds the provisions related to special health service districts.

 

 

 

 

 

 

 

Amendments Adopted by Committee of the Whole

 

1.      Appropriates medically needy account monies to DHS for nonprofit hospital capital project grants.

 

2.      Reduces the appropriation for the capital project grant program from $2.5 million to $1.5 million.

 

House Action                                                              Senate Action

 

PIRA         2/13/01      DPA/SE           10-0-0-0          HEALTH         3/27/01         DP       7-0-1-0

APPROP   3/6/01        DPA/SE           12-1-0-3          APPROP         4/18/01         DPA    10-0-1-0

3rd Read     3/19/01                              49-7-4-0          3rd Read           4/30/01                     27-2-1

 

 

Prepared by Senate Staff

May 16, 2001